“We sincerely regret the impact this action will have on our employees at Cozad,” said Gregg Sherrill, chairman and CEO, Tenneco. “However, we now feel that industry conditions have stabilized enough for us to move forward on our original plans to consolidate our ride control capacity in the United States, which we need to do in order to strengthen our long-term competitiveness in this critically important market.”

Tenneco currently employs 460 hourly and 40 salaried workers at the plant. The company expects to begin transferring current customer business to other ride control operations later this year, including Hartwell, Ga., Paragould, Ark., and Celaya, Mexico. Tenneco expects to complete the closure in the fourth quarter 2010. Impacted employees will receive transitional assistance.

The company had originally announced plans to close one of its OE ride control plants in the United States as part of its global restructuring announcement in October 2008, but postponed this action in January 2009 in order to preserve cash during the height of the global economic crisis.

Tenneco estimates the closing will generate $8 million in annualized cost savings once completed, incremental savings to the $58 million restructuring program announced in October 2008. The company expects to record up to $20 million in restructuring and restructuring related charges – approximately $14 million in cash. The company will record $11 million of these charges in the third quarter 2009, and the remainder in subsequent quarters through third quarter 2010.